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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: MikeM54321 who wrote (5811)11/13/1999 2:06:00 PM
From: MikeM54321  Read Replies (3) of 12823
 
Re: MSO Upgrades - Current AT&T Status/Projections

Thread,
On Friday, November 5th, the Wall Street Journal printed a fact filled article on the huge risks that AT&T's Mike Armstrong is taking with it's MSO properties. It's a front page story, column one. The title of the article is:

Amid All the Bets, One Stands Out: AT&T Ventures Into Cable.
"Armstrong Pays $110 Billion To Transform an Icon; "Time Is Your Enemy"

I wish I could link to it, but I could not find it online. The article goes into great detail about the history behind Armstrong's moves and was full of figures. I thought I should post some figures for future reference. All the billions ($$) mentioned should be of great interest to Last Mile investors. It sure gets my attention.
MikeM(From Florida)

************************************
--Over the past year AT&T has spent $110 Billion purchasing cable companies

--MediaOne Group reaches 8 million customers
--TCI cable property has the potential to reach 17 million customers
--AT&T is projecting on signing up 30% of homes for cable telephony by 2004
--Cable telephony customers would then be 7.5 million.
--AT&T has 63 million LD customers today

--With it's cablecos, they can reach 22% of the nation
--They can reach up to 50% with deals such as one they are working on with Time Warner
--AT&T has signed up only 2,100 cable phone paying customers in Fremont, CA so far.
--Free cable phone trials in five other cities. Aim to sign up hundreds of thousands by year end 2000

--AT&T paid $48 billion for TCI and some think they overpaid.
--TCI sorely lagged other cablecos in upgrading to HFC.
--TCI has a patchwork of systems
--AT&T purchased 30,000 trucks and tens of thousands of techs with TCI
--AT&T hopes to have 50% of the upgrades completed by year end 1999[Don't see how this is possible?]

--AT&T will be spending $4 billion on upgrading TCI and MediaOne in 2000
--Upgrading the entire networks of TCI and MediaOne is estimated to exceed $10 billion
--To hook up cable telephony, takes a truck roll that could take hours and costs $750/home.

--1999 Revenue breakdown:
33% Consumer long distance
27% Business long distance
18% Business data, local phone
11% Video
10% Wireless
1% Consumer broadband and data

--2004 Projected Revenue Breakdown:
33% Business data, local phone
17% Business long distance
14% Wireless
13% Consumer long distance
13% Video
10% Consumer broadband and data
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